Orlando home sales leap 18 percent amid increased inventory

The overall median price for October is $160,000, a 3.90 percent increase over October 2013 and a 4.23 percent decrease compared to last month. Orlando’s overall median price has now recorded year-to-year gains for 40 consecutive months and has risen 38.53 percent since July 2011.

Foreclosures experienced the greatest jump in median price increase (25.00 percent) in October. The median for normal sales increased 2.78 percent, while that for short sales increased 10.81 percent.

The median price of single-family homes increased 3.41 percent when compared to October of last year, and the median price of condos decreased 0.13 percent.

Completed Sales

Members of ORRA participated in the sales of 2,807 homes (all home types and all sale types combined) that closed in October 2014, an increase of 17.74 percent compared to October 2013 and an increase of 1.34 percent compared to September 2014.

Buyers who have been shut out of the market for the past few years are finding opportunity – and quality – in Orlando’s much improved inventory,” explains ORRA Chairman Zola Szerencses, Keller Williams Heritage Realty. “In particular, the inventory’s significant number of additional foreclosures is providing options and choices for buyers whose previous efforts to find a home were leaving them empty-handed.”

Closing of foreclosures in Orlando increased by 51.93 percent in when compared to October 2013. “Normal” home sales in Orlando increased by 25.69 percent when compared to October 2013 and made up 68.15 percent of the sales pie. Closings of short sales decreased by 60.70 percent.

Single-family home sales increased 18.28 percent in October 2014 compared to October 2013, while condo sales increased 11.30 percent. Compared to last month, single-family home sales decreased 1.14 percent and condo sales increased 12.94 percent.

Homes of all types spent an average of 72 days on the market before coming under c

ontract in October 2014, and the average home sold for 96.31 percent of its listing price. In October 2013 those numbers were 64 days and 96.26 percent, respectively.

The average interest rate paid by Orlando homebuyers in October - 4.05 percent – decreased from September’s 4.20 percent. In October of last year, homebuyers paid an

average interest rate of 4.28 percent.

Pending Sales

Pending sales – those under contract and awaiting closing – are currently at 6,385. The number of pending sales in October 2014 is 10.06 percent lower than it was in October 2013 (7,099), and 1.11 percent higher than it was in September 2014 (6,315).

Normal properties made up 40.94 percent of pending sales in October 2014. Short sales accounted for 31.81 percent of pendings while bank-owned properties accounted for 27.27 percent.

Inventory

The number of existing homes (all sales types and all home types combined) that were available for purchase in October is 32.07 percent above that of October 2013 and now rests at 12,507. Inventory increased 1.55 percent from last month.

The inventory of foreclosure sales increased by 57.00 percent in October 2014 compared to October 2013. The inventory of normal sales increased by 37.68 percent, and short sales inventory decreased 15.37 percent.

The inventory of single-family homes is up by up by 32.30 percent when compared to October of 2013, while condo inventory is up by 32.10 percent. The inventory of duplexes, townhomes, and villas is up by 29.76 percent.

Current inventory combined with the current pace of sales created a 4.46-month supply of homes in Orlando for October. There was a 3.97-month supply in October 2013 and a 4.45-month supply last month.

Affordability

The October affordability index is 190.00 percent, an increase from September’s index of 178.57. (An affordability index of 99 percent means that buyers earning the state-reported median income are 1 percent short of the income necessary to purchase a median-priced home. Conversely, an affordability index that is over 100 means that median-income earners make more than is necessary to qualify for a median-priced home.)

Buyers who earn the reported median income of $56,069 can qualify to purchase one of 6,352 homes in Orange and Seminole counties currently listed in the local multiple listing service for $304,002 or less.

First-time homebuyer affordability in October increased to 135.11 percent from last month’s 126.98 percent. First-time buyers who earn the reported median income of $38,127 can qualify to purchase one of the 3,605 homes in Orange and Seminole counties currently listed in the local multiple listing service for $183,753 or less.

Condos and Town Homes/Duplexes/Villas

The sales of condos in the Orlando area were up 11.30 percent, with 384 sales recorded in October 2014 compared to 345 in October 2013.

Orlando homebuyers purchased 262 duplexes, town homes, and villas in October 2014, which is a 23.58 percent increase compared to the 212 purchased in October 2013.

MSA Numbers

Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in October were up by 16.95 percent when compared to October of 2013. Throughout the MSA, 3,394 homes were sold in October 2014 compared with 2,902 in October 2013. To date, MSA sales are down 0.15 percent.

Each individual county’s monthly sales comparisons are as follows

• Lake: 11.09 percent above October 2013;
• Orange: 17.42 percent above October 2013;
• Osceola: 15.68 percent above October 2013; and
• Seminole: 21.47 percent above October 2013.

The relative slowdown in median price increases means buyer opportunity, says ORRA Chairman Zola Szerencses, Keller Williams Heritage Realty. “Jumps in the year-over-year median price comparison were in the double digits for almost two years, maxing out with a 29 percent increase in August 2013,” explains Szerencses. “Single-digit increases – combined with Orlando’s pumped up inventory of homes available for purchase – are creating a favorable environment for buyers, especially those contending with Orlando’s soaring rental rates.”

Foreclosures experienced the greatest jump in median price increase (14.09 percent) in September. The median for normal sales increased 6.08 percent, while that for short sales increased 5.77 percent.

The median price of single-family homes increased 7.35 percent when compared to September of last year, and the median price of condos increased 9.38 percent.

Completed Sales

Members of ORRA participated in the sales of 2,711 homes (all home types and all sale types combined) that closed in September 2014, an increase of 10.92 percent compared to September 2013 and an increase of 6.73 percent compared to August 2014.

Closing of foreclosures in Orlando increased by 52.50 percent in when compared to September 2013. “Normal” home sales in Orlando increased by 18.08 percent when compared to September 2013 and made up 68.17 percent of the sales pie. Closings of short sales decreased by 56.26 percent.

Single-family home sales increased 12.20 percent in September 2014 compared to September 2013, while condo sales increased 8.04 percent. Compared to last month, single-family home sales increased 8.44 percent and condo sales decreased 2.61 percent.

Homes of all types spent an average of 70 days on the market before coming under contract in September 2014, and the average home sold for 96.48 percent of its listing price. In September 2013 those numbers were 68 days and 96.83 percent, respectively.

The average interest rate paid by Orlando homebuyers in September - 4.20 percent – increased from August’s 4.16 percent. In September of last year, homebuyers paid an average interest rate of 4.49 percent.

Pending Sales

Pending sales – those under contract and awaiting closing – are currently at 6,315. The number of pending sales in September 2014 is 12.58 percent lower than it was in September 2013 (7,224), and 2.95 percent lower than it was in August 2014 (6,507).

Normal properties made up 43.01 percent of pending sales in September 2014. Short sales accounted for 33.37 percent of pendings while bank-owned properties accounted for 23.63 percent.

Inventory

The number of existing homes (all sales types and all home types combined) that were available for purchase in September is 34.94 percent above that of September 2013 and now rests at 12,316. Inventory declined 5.87 percent from last month.

The inventory of foreclosure sales increased by 66.61 percent in September 2014 compared to September 2013. The inventory of normal sales increased by 39.04 percent, and short sales inventory decreased 10.92 percent.

The inventory of single-family homes is up by up by 35.48 percent when compared to September of 2013, while condo inventory is up by 31.04 percent. The inventory of duplexes, townhomes, and villas is up by 36.86 percent.

Current inventory combined with the current pace of sales created a 4.54-month supply of homes in Orlando for September. There was a 3.73-month supply in September 2013 and a 5.15-month supply last month.

Affordability

The September affordability index is 178.10 percent, a decrease from August’s index of 182.71. (An affordability index of 99 percent means that buyers earning the state-reported median income are 1 percent short of the income necessary to purchase a median-priced home. Conversely, an affordability index that is over 100 means that median-income earners make more than is necessary to qualify for a median-priced home.)

Buyers who earn the reported median income of $56,012 can qualify to purchase one of 6,135 homes in Orange and Seminole counties currently listed in the local multiple listing service for $298,317 or less.

First-time homebuyer affordability in September decreased to 126.65 percent from last month’s 129.93 percent. First-time buyers who earn the reported median income of $38,088 can qualify to purchase one of the 3,581 homes in Orange and Seminole counties currently listed in the local multiple listing service for $180,316 or less.

Condos and Town Homes/Duplexes/Villas

The sales of condos in the Orlando area were up 8.04 percent, with 336 sales recorded in September 2014 compared to 311 in September 2013.

Orlando homebuyers purchased 242 duplexes, town homes, and villas in September 2014, which is a 4.31 percent increase compared to the 232 purchased in September 2013.

MSA Numbers

Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in September were up by 14.22 percent when compared to September of 2013. Throughout the MSA, 3,294 homes were sold in September 2014 compared with 2,884 in September 2013. To date, MSA sales are down 2.19 percent.

*Each individual county’s monthly sales comparisons are as follows:

• Lake: 15.28 percent above September 2013;
• Orange: 11.96 percent above September 2013;
• Osceola: 25.92 percent above September 2013; and
• Seminole: 10.21 percent above September 2013.